Can't close Ltd Company due to Woodford holdings

[KarlHungus]

Hi,

My limited company is no longer trading and I would like to close it. However, some years ago I used surplus funds in the company account to invest in a few funds, including Woodford Equity Income.

I have sold all other holdings but have a negligible amount £500ish) left in the WEI fund. As trading is suspended on that fund, I'm in a situation where I can't close the Ltd co...meaning I have to continue with VAT returns, company accounts, accountant fees etc. All for the sake of £500!

Would anyone have any suggestions as to how I can close the company despite the frozen fund holdings? I am fine to lose the money tied up in the fund obviously.

thanks

[HootersGsy]

First of all, deregister for VAT.

Can you transfer the interest? If so, I’d dividend it out in-specie and wind the company up.

[Mandat]

KarlHungus said:

Hi,

My limited company is no longer trading and I would like to close it. However, some years ago I used surplus funds in the company account to invest in a few funds, including Woodford Equity Income.

I have sold all other holdings but have a negligible amount £500ish) left in the WEI fund. As trading is suspended on that fund, I'm in a situation where I can't close the Ltd co...meaning I have to continue with VAT returns, company accounts, accountant fees etc. All for the sake of £500!

Would anyone have any suggestions as to how I can close the company despite the frozen fund holdings? I am fine to lose the money tied up in the fund obviously.

thanks

This is most likely the wrong way to go about this, but if I were in your position, I would consider paying the £500 into the company account from my own money, as if it came from the fund, so that the company books are in balance, thus allowing you to close the company.

Presumably you would then also be able to draw back most, if not all of the £500 from the company via a final salary, dividend, etc payment back to you.

[sideways sid]

Can the company donate the shares to a charity?

[LeoSayer]

You might not be able to buy or sell units but you should be able to transfer them to someone else.

[KarlHungus]

Thanks for the helpful suggestions. I will speak to the broker about transferring the holdings into another name. I have personal accounts with them too so this would be a good outcome. I'll talk to my accountant about the other suggestions and hopefully come out with a way forward.

Will deregister for VAT also as it will save the quarterly nil submissions.

Will let you know how it goes.

[KarlHungus]

After talking to the broker, they've advised that they can transfer the holdings to another account with them.

So I should be fine to move them over to an account in my personal name which gets them off the company books and means I can close the company.

Imagine I'll need to pay the equivalent value into the company a/c to square the accounts up but that is easily done.

Thanks again for your replies, this has been one of those things I've left for far too long - will be great to get it resolved!